The Top 2 Reasons To Look at Newly Built Homes

The Top 2 Reasons To Look at Newly Built Homes

When planning a move, a newly built home might not be your first thought. However, with an increasing number of brand-new homes hitting the market and builders prioritizing smaller, more budget-friendly options, a new build could be the solution to achieving your homeownership goals.

Here’s why exploring new construction could be a smart choice—and how partnering with an experienced real estate agent can help you find one that fits your needs and budget.

1. More Newly Built Homes Are Available Right Now

First, let’s clarify the types of homes available. A newly built home refers to a property that has just been constructed or is currently under construction. In contrast, an existing home is one that has been previously owned and lived in.

At the moment, the inventory of existing homes remains limited. If you’re finding it difficult to locate a home that suits your preferences due to the lack of options, considering newly built homes could significantly broaden your choices. This is especially true now, as there are more new homes on the market than in a typical year (see graph below):

Between 1983 and 2019, newly built homes accounted for just 13% of the total housing inventory. Today, that share has risen significantly to 28.8%, according to the latest data.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), highlights this shift, stating:

“Even though existing home sales have been stuck at low levels, newly constructed home sales look to mark one of its best annual performance in 15 years . . . The new home inventory has been consistently rising with homebuilders getting active and making up around 1/3 of total inventory.” 

The rise in new home construction is a promising development, but builders are proceeding cautiously. Instead of flooding the market, they’re addressing over a decade of underbuilding to meet demand. Even so, there are still far more buyers than available homes. The silver lining? This increase in newly built homes gives you more options to explore in your home search.

2. Newly Built Homes Are Becoming Less Expensive

Unsure if a new build fits your needs or budget? The average price of newly constructed homes has decreased compared to last year.

Why? Builders understand that affordability is a priority for buyers. As a result, they’re concentrating on constructing smaller homes at lower price points to attract more buyers. As Realtor.com states:

“Builders are increasingly bringing smaller, more affordable homes to the market, so buyers may find more newly-built homes that fit their budget.” 

It's important to remember that purchasing a newly built home is different from buying an existing one. Builder contracts come with unique terms and conditions, so working with a local agent who understands the market, builder reputations, and contract details is essential.

Bottom Line

If you're looking to create your dream home within your budget, a new build could be the perfect opportunity. Reach out to explore the latest developments from local builders and discover your options.